Investment Avenues

Financial Assets
Fixed Deposits

Real Assets
Real Estate

Precious Objects
Insurance
Gold

Bonds
NSC Company Bonds NCD

Public Provident Fund

Equity

Mutual Funds

Fixed Deposits - Term Deposits Fixed deposit Accounts sum of money deposited for a specified period fixed rate of interest Highly liquid and security for loans

Life Insurance Agreement between Policy owner and Insurer Insurer pays agreed sum of money Insurance Premium Premium represents sacrifice and assured sum the benefit Offers protection through life cover
Bonds Debt instrument Investors receive interest as returns - Coupons Company is the issuer of bond/borrower and investors are the lenders

NSC National Savings Certificate - Certificates issued by Dept of Post, GoI - Long term savings - transferable to another person also can be pledged for taking loans Company Bonds Issued by companies - long term debt instruments - maturity period of at least one year NCD Non-Convertible Debentures

Equity Refers to buying and holding of shares of stock On a stock market Anticipating incomes from dividends, capital gains (rise of value of stock) Voting rights to investors Share companies profits (owners of the company) Venture capital in infant companies Mutual Funds Company that collects money from investors and invests the money in stocks, bonds, short term money market instruments or other securities Purchased from fund or through brokers cannot be purchased in secondary market Redeemable

Real Estate Involves the purchase, ownership, management, rental and/or sale of real estate(property) for profit Limited liquidity Sources of cash flow
Net operating income Capital appreciation

Gold Investment done by purchasing gold bars, coins, E-gold, ETFs E- gold digital gold currency operated by Gold and Silver Reserve under E-Gold Ltd ETF Exchange Traded Funds open ended mutual funds investments in gold

NSEL - National Spot Exchange Limited Demutualised commodity spot market Trading platform with facility to access and participate Sell commodities directly to end users DEMAT delivery based instruments such as gold, copper, zinc and lead.

Stock Market
Refers to the market that enables the trading of company stocks (collective shares), other securities, and derivatives. The stocks are listed and traded on stock exchanges Importance of Stock Market sources for companies to raise money allows businesses to go public raise additional capital for expansion affords investors the ability to quickly and easily sell securities important part of the dynamics of economic activity, affect the wealth of households and their consumption

Stock Exchanges
National Stock Exchange NSE - Nifty - 50 companies

Bombay Stock Exchange BSE SENSEX - 30 companies